Key benchmark indices trimmed initial gains and hit fresh intraday low in morning trade. Firmness in Asian stock supported domestic bourses. The barometer index, the S&P BSE Sensex, was up 58.37 points or 0.26%, off close to 100 points from the day's high and up about 45 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Bajaj Auto rose despite reporting decline in sales in April. IDBI Bank gained as the bank said at the time pf reporting its Q4 results that the bank's gross non-performing assets declined to Rs 9960.16 crore as on 31 March 2014, from Rs 10012.44 crore as on 31 December 2013. IT stocks edged higher.
The market edged higher in early trade. It trimmed initial gains and hit fresh intraday low in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 454.48 crore on Wednesday, 30 April 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 58.37 points or 0.26% to 22,476.17. The index rose 157.82 points at the day's high of 22,575.62 in early trade. The index gained 15.75 points at the day's low of 22,433.55 in morning trade.
The CNX Nifty was up 14.80 points or 0.22% to 6,711.20. The index hit a high of 6,737.65 in intraday trade. The index hit a low of 6,698.70 in intraday trade.
The BSE Mid-Cap index rose 37.11 points or 0.51% to 7,360.57. The BSE Small-Cap index rose 51.29 points or 0.68% to 7,541.18. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,016 shares gained and 574 shares fell. A total of 92 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks gained and rest of them fell. HDFC (up 1.1%), Tata Power Company (up 1.35%) and Hero MotoCorp (up 0.77%) edged higher from the Sensex pack.
IT stocks edged higher. Infosys (up 1.16%), TCs (up 0.52%), Wipro (up 0.57%) and Tech Mahindra (up 0.01%) gained.
HCL Technologies declined 0.09%. The company continues to focus on local hiring and workforce training & development to build a vast talent pool as it expands its presence in the United States, its largest market. The company made this announcement on 1 May 2014. The company has created a distinctive culture of employee-driven innovation to yield excellent business outcomes for both HCL and its customers. This culture known as 'Ideapreneurship 'reflects grassroots innovation that is business-driven and customer-focussed, where employees create value for customers by leveraging the role based learning curriculum HCL offers, developing innovative solutions and adding value to the strategic IT initiatives of an expanding US client base of Fortune 500 companies, it added.
"AT HCL, we believe in engaging and enabling our employees who epitomize the distinctive and lasting beliefs that form the foundation of what HCL offers, said Anant Gupta, President and CEO, HCL Technologies. "Our vision is to create growth multipliers for clients by empowering our employees to achieve excellence and create differentiated value," he added.
HCL continues to grow its operations, employee base and customer relationships across the United States. During the quarter ended 31 March 2014, HCL America contributed 55.4% of HCL's global revenues and grew 11% year on year, it said in a statement.
Bajaj Auto rose 0.5% despite reporting decline in sales in April. The company said during market hours that total sales fell 4% to 3.31 lakh units in April 2014 over April 2013. Exports rose 16% to 1.5 lakh units in April 2014 over April 2013. Commercial vehicles sales dropped 26% to 31,893 units in April 2014 over April 2013. Motorcycle sales slipped 0.39% to 2.99 lakh units in April 2014 over April 2013.
IDBI Bank rose 3.81% as the bank's gross non-performing assets declined to Rs 9960.16 crore as on 31 March 2014, from Rs 10012.44 crore as on 31 December 2013. IDBI Bank's gross non-performing assets (NPAs) declined to Rs 9960.16 crore as on 31 March 2014, from Rs 10012.44 crore as on 31 December 2013 but increased from Rs 6449.98 crore as on 31 March 2013. The bank's ratio of gross NPAs to gross advances stood at 4.9% as on 31 March 2014 as against 5.44% as on 31 December 2013 and 3.22% as on 31 March 2013.
The bank's net NPAs declined to Rs 4902.30 crore as on 31 March 2014, from Rs 5223.06 crore as on 31 December 2013 but increased from Rs 3100.36 crore as on 31 March 2013. The ratio of net NPAs to net advances stood at 2.48% a son 31 March 2014 as against 2.93% as on 31 December 2013 and 1.58% as on 31 March 2013.
IDBI Bank's net profit declined 6.53% to Rs 518.23 crore on 4.27% growth in total income to Rs 7866.52 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Wednesday, 30 April 2014. The stock market was closed on Thursday, 1 May 2014, on account of May Day.
The bank's provisions and contingencies surged 37.89% to Rs 1198.50 crore in Q4 March 2014 over Q4 March 2013.
IDBI Bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.68% as on 31 March 2014 as against 12.71% as on 31 December 2013.
IDBI Bank creates Special Reserve through appropriations of profits, in order to avail tax deductions as per Section 36(1)(Viii) of the Income Tax Act, 1961. The Reserve Bank of India (RBI), through its circular dated 20 December 2013, had advised banks to create deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI guidelines, during the three months ended 31 December 2013, the bank created DTL of Rs 279.96 crore on Special Reserve outstanding at 31 March 2013, by reducing the reserves. Had this amount been charged to the profit & loss account in accordance with the generally accepted accounting principles in India, the amount of profit for the year would have been lower by such amount, IDBI Bank said.
IDBI Bank's net profit declined 40.41% to Rs 1121.40 crore on 4.56% growth in total income to Rs 29576.27 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, IDBI Bank's net profit declined 39.02% to Rs 1151.74 crore on 4.61% growth in total income to Rs 29720.25 crore in FY 2014 over FY 2013.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.095, compared with its close of 60.34 on Wednesday, 30 April 2014. Financial markets remained closed on Thursday, 1 May 2014 on account of May Day.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2014 today, 2 May 2014. The HSBC PMI fell to 51.3 in March after surging to a one-year high of 52.5 in February.
Eight core sector industries increased 2.5% in March as against 7% in the same month in 2013. On account of higher outputs from coal, petroleum, steel and electricity, the eight key infrastructure industries grew by 2.5% in March. The eight core sector grew by 4.5% in February, while in January, the industries had grown by 1.6%. Overall, the core sector industries grew by 2.6% in FY14 compared to the 6.5% in FY13. Coal production grew by 0.7% in March 2014 compared to the same month in 2013. Steel production and electricity generation also grew by 5.4% each in March 2014 compared to March 2013.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Most Asian stocks rose on Friday as investors weighed corporate earnings before the release of US non-farm payrolls later in the global day today, 2 May 2014. Key benchmark indices in Taiwan, Hong Kong, Singapore, and Indonesia rose 0.31% to 0.84%. Key benchmark indices in Japan, and South Korea were off 0.21% to 0.4%.
China's official manufacturing purchasing managers' index rose to 50.4 in April.
Trading in US index futures indicated that the Dow could gain 6 points at the opening bell on Friday, 2 May 2014. US stocks ended little changed on Thursday, with the Dow Jones Industrial Average falling from a record, as data showed an increase in jobless claims before the government's monthly labor report.
The Federal Reserve after a two-day meet on Wednesday, 30 April 2014 said it would continue to trim the pace of bond purchases as the economy gains momentum. The central bank cut its monthly asset purchases to $45 billion and said further reductions in measured steps are likely.
Fed Chairwoman Janet Yellen is winding down record stimulus as the world's largest economy shows signs of rebounding from a first-quarter standstill.
Data showed applications for US unemployment benefits unexpectedly climbed to a nine-week high last week, while consumer spending surged in March by the most in almost five years as warmer weather brought shoppers back to auto-dealer lots and malls.
The US non-farm payrolls data for April due later today.
The Institute for Supply Management's factory index rose to 54.9 in April from 53.7 in the prior month, the Tempe, Arizona-based group's report showed today. Readings above 50 indicate expansion. The ISM's factory gauge averaged 53.9 for all of last year.
The US economy barely grew in the first quarter as the severe winter hampered exports and led businesses to curtail investment spending, but activity already appears to be bouncing back. Gross domestic product expanded at a 0.1% annual rate, the slowest since the fourth quarter of 2012, the Commerce Department said on Wednesday.
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